Can Information From Publicly Available Sources Reveal Manipulation of Financial Statements? Case Study of Czech and Slovak Companies.

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F22%3A00135098" target="_blank" >RIV/00216224:14560/22:00135098 - isvavai.cz</a>

Result on the web

<a href="https://editorial.upce.cz/1804-8048/30/3/1556" target="_blank" >https://editorial.upce.cz/1804-8048/30/3/1556</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.46585/sp30031556" target="_blank" >10.46585/sp30031556</a>

Result language

angličtina

Original language name

Can Information From Publicly Available Sources Reveal Manipulation of Financial Statements? Case Study of Czech and Slovak Companies.

Original language description

Financial reporting is a source of information used as a basis for economic decisions. It is a basis for the calculation of financial indicators that serve to evaluate the financial health of a company. Statements that are accurate and provide trustworthy information are a prerequisite for an enhancement of company competitiveness on national and global markets. Research into and studies on the accuracy of the information contained in statements show that statement creators use manipulation to improve accounting entities' image. The aim of this paper is to verify whether ordinary users of financial statements can rely on the veracity of the information contained in the financial statements published in the usual way in available sources. The research subject was financial statements of entities listed in the TOP Czech and TOP Slovak ranking within the revenue category. We investigated whether statements show an indication of accounting data manipulation using the CFEBT (cash flow earning before tax) method and a method aimed at verifying the linear dependence between earning before tax (EBT) and cash flow (CF). The empirical results yielded interesting findings. They showed that the disputable item is the results of accounting estimates, which are often influenced by subjective decisions made by the financial statements creators.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50205 - Accounting

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2022

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Scientific Papers of the University of Pardubice, Series D: Faculty of Economics and Administration

ISSN

1211-555X

e-ISSN

1804-8048

Volume of the periodical

30

Issue of the periodical within the volume

3

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

9

Pages from-to

1-9

UT code for WoS article

001041312900002

EID of the result in the Scopus database

2-s2.0-85148215292